When Apple introduced its first iPhone it single-handedly created the market for high end smartphones. The company’s iPhone devices have dominated globally and have given the California based technology giant a product that has propelled it to the top of consumer electronics sector. The Wall Street Journal reports that Apple is now getting ready to move away from their business model of developing a few cutting edge, high end products to creating a cheaper version of their hit iPhone device. The WSJ says that “people briefed on the matter” claim the strategy is expected to grab a larger market share in emerging markets, especially China.
According to the report claim the low-cost device may look like the iPhone 5 with a significantly cheaper casing that would replace the current aluminum body. The new device may follow in the footsteps of HTC and Nokia and use polycarbonate. Another cost cutting measure may be to utilize CPU and graphics processors that are from previous version of the device.
The Wall Street Journal article is not solid proof that a low-end iPhone will make its way into consumers hands any time soon. Apple has resisted making cheaper versions of its devices including the iPhone for many years and has chosen to sell the previous versions of the smartphone at large prices reductions. Under Steve Jobs the company steered away from the low-end market but with Tim Cook at the helm this may change. Apple recently went back on its statement that 7 inch tablets were not a good idea by offering their own iPad Mini.
If China is the second most important market for Apple as Tim Cook has mentioned then the company may develop a cheaper iPhone to combat the many cheap Android powered devices selling in China.
Source: Super Tech Blog
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